Pre-approval with partnership for First Deal

[Josh Feldman]

Hi team,

My partner and I are looking to make our first deal. Our target market is about 4 hours away. We have a realtor and contractor out there, and are in the process of hiring a property manager who will serve as our boots on the ground. We are looking to get pre-approval (for conventional financing) so we can pull the trigger quickly if a good deal comes along. How exactly does the process work if we do not yet have an LLC? Would a lender look at each of our financial and credit history, or as a combined entity? Does it make more sense to create an LLC first? And if we are investing at a distance, can our lender be local to us or does it have to be local to our investment? Any and all advice or suggestions are greatly appreciated!!

Thanks in advance.

[Aaron K.]

@Josh Feldman yes because any LLC would have no history and be unable to qualify by itself. You will likely need proof of income as well as any debts you currently have, but if you ask a lender they will tell you exactly what you need it isn't a secret.